Bundle: Managerial Accounting, Loose-leaf Version, 14th - Book Only
14th Edition
ISBN: 9781337541398
Author: Carl Warren; James M. Reeve; Jonathan Duchac
Publisher: Cengage Learning
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Chapter 5, Problem 23E
A (1)
To determine
Calculate the Company C’s margin of safety expressed in dollars.
A (2)
To determine
Calculate the Company C’s margin of safety expressed as a percentage of sales.
B.
To determine
To determine: the amount of actual sales (dollars).
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Margin of Safety
a. If Canace Company, with a break-even point at $631,800 of sales, has actual sales of $780,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? Round the percentage to the nearest whole number.
1. $
2. %
b. If the margin of safety for Canace Company was 30%, fixed costs were $1,593,900, and variable costs were 70% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.)$
Margin of Safety
a. If Canace Company, with a break-even point at $463,600 of sales, has actual sales of $610,000, what is the margin of safety expressed (1) in dollars and (2) as a
percentage of sales? Round the percentage to the nearest whole number.
1. $
2.
%
b. If the margin of safety for Canace Company was 30 %, fixed costs were $1,236,900, and variable costs were 70% of sales, what was the amount of actual sales (dollars)?
(Hint: Determine the break-even in sales dollars first.)
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Margin of safety
a. If Kirwan Company, with a break-even point at $425,600 of sales, has actual sales of $760,000, what is the margin of safety expressed (1) in dollars and (2) as a
percentage of sales?
1. $
2.
%
b. If the margin of safety for Kirwan Company was 35%, fixed costs were $1,276,275, and variable costs were 65% of sales, what was the amount of actual sales
(dollars)? (Hint: Determine the break-even in sales dollars first.)
Chapter 5 Solutions
Bundle: Managerial Accounting, Loose-leaf Version, 14th - Book Only
Ch. 5 - Describe how total variable costs and unit...Ch. 5 - Which of the following costs would be classified...Ch. 5 - Describe how total fixed costs and unit fixed...Ch. 5 - Prob. 4DQCh. 5 - Prob. 5DQCh. 5 - Prob. 6DQCh. 5 - Prob. 7DQCh. 5 - Prob. 8DQCh. 5 - Prob. 9DQCh. 5 - What does operating leverage measure, and how is...
Ch. 5 - Prob. 1BECh. 5 - Prob. 2BECh. 5 - Prob. 3BECh. 5 - Prob. 4BECh. 5 - Prob. 5BECh. 5 - Prob. 6BECh. 5 - Prob. 7BECh. 5 - Classify Costs Following is a list of various...Ch. 5 - Identify cost graphs The following cost graphs...Ch. 5 - Identify activity bases For a major university,...Ch. 5 - Prob. 4ECh. 5 - Identify fixed and variable costs Intuit Inc....Ch. 5 - Prob. 6ECh. 5 - High-low method Ziegler Inc. has decided to use...Ch. 5 - Prob. 8ECh. 5 - Contribution margin ratio Young Company budgets...Ch. 5 - Prob. 10ECh. 5 - Prob. 11ECh. 5 - Prob. 12ECh. 5 - Prob. 13ECh. 5 - Prob. 14ECh. 5 - Prob. 15ECh. 5 - Prob. 16ECh. 5 - Prob. 17ECh. 5 - Prob. 18ECh. 5 - Prob. 19ECh. 5 - Prob. 20ECh. 5 - Prob. 21ECh. 5 - Prob. 22ECh. 5 - Prob. 23ECh. 5 - Prob. 24ECh. 5 - Prob. 25ECh. 5 - Classify costs Seymour Clothing Co. manufactures a...Ch. 5 - Prob. 2PACh. 5 - Prob. 3PACh. 5 - Prob. 4PACh. 5 - Prob. 5PACh. 5 - Contribution margin, break-even sales,...Ch. 5 - Classify costs Cromwell Furniture Company...Ch. 5 - Prob. 2PBCh. 5 - Prob. 3PBCh. 5 - Prob. 4PBCh. 5 - Prob. 5PBCh. 5 - Contribution margin, break-even sales,...Ch. 5 - Prob. 1ADMCh. 5 - Prob. 2ADMCh. 5 - Prob. 3ADMCh. 5 - Prob. 1TIFCh. 5 - Prob. 3TIF
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- High-Low Method for a Service Company Boston Railroad decided to use the high-low method and operating data from the past six months to estimate the fixed and variable components of transportation costs. The activity base used by Boston Railroad is a measure of railroad operating activity, termed "gross-ton miles," which is the total number of tons multiplied by the miles moved. Transportation Costs Gross-Ton Miles January $846,300 356,000 February 943,600 398,000 March 666,900 258,000 April 904,700 385,000 May 758,800 310,000 June 972,800 419,000 Determine the variable cost per gross-ton mile and the fixed cost. Variable cost (Round to two decimal places.) 2$ per gross-ton mile Total fixed costarrow_forwarda. If Kirwan Company, with a break-even point at $2,080,000 of sales, has actual sales of $3,200,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? 1. $ 2. % b. If the margin of safety for Kirwan Company was 25%, fixed costs were $1,500,000, and variable costs were 60% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.) $arrow_forwardb. If the margin of safety for Beartooth Company was 15%, fixed costs were $9,180,000, and variable costs were 60% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.) Actual sales in dollars $arrow_forward
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